Dana Gas reports $92m H1 profit

Dubai, August 4, 2013

Dana Gas, the Middle East’s largest regional private sector natural gas company, has reported a net profit of Dh341 million ($92.85 million) for the first half of this year and Dh100 million for the second quarter.

Dana had achieved a profit of Dh181 million during Q2 last year.

Average overall production volumes were up 5 per cent to 61,700 barrels of oil equivalent per day (boepd) in Q2 and up 1 per cent to 61,500 boepd in H1 2013.

In Egypt, Dana Gas recently achieved a record production of 39,000 boepd, a 13 per cent increase on the 2012 average production. Furthermore, LPG sales have recommenced in Kurdistan on July 17, energy prices having rebounded in July and monetary support is being provided for in Egypt.

The company’s H1 revenue and gross profits were Dh1,085 million and Dh506 million, respectively. Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) was Dh616 million compared to Dh822 million in the same period last year.

In Q2 2013 revenues and gross profits were Dh528 million and Dh232 million.

Dr Adel AlSabeeh, chairman of Dana Gas, said: “One of our principal strategies in the first half of 2013 was to concentrate on extracting higher production volumes with limited capital investment. I am pleased to announce that our group production numbers have increased 5 per cent in the quarter and now average 61,700 barrels of oil equivalent per day (boepd). We also achieved a record average production number in Egypt of 39,000 boepd in July. These are excellent production figures and demonstrate the high quality of assets we have in our portfolio.

“As LPG sales resume, energy prices rebound, production volumes continue to remain high, and the Egyptian economic situation stabilizes as government authorities continue to work with the international financial community to address investors’ concerns, collectively these will support our main growth strategies going forward.”

Rashid Al Jarwan, acting chief executive officer of Dana Gas, added: “Good progress is being made on our drilling programme in Egypt. We discovered hydrocarbons in a new well, Begonia 1, and successfully brought production online from two previously discovered wells, Allium and West Sama. In Kurdistan, we have completed the reconstruction of the loading bay which will enable resumption of LPG and enhance revenue. Furthermore, the appointment of Dr Patrick Allman-Ward as new CEO will bring experience, knowledge and hands-on experience in Egypt, which will benefit Dana Gas immensely as it focuses on its next stage of growth.” – TradeArabia News Service